The Bank of Ghana (BoG) is introducing tougher checks on properties. This move aims to significantly reduce fraud within Ghana's real estate sector. The central bank wants to build more trust for buyers and sellers.
These new measures are part of a push for greater honesty in property deals. Mrs. Rosemary Akabutu, Deputy Head of the Collateral Registry Department at BoG, stressed the importance of checking assets. She spoke to members of the Ghana Association of Real Estate Brokers (GAREB). Verifying property ownership and any existing loans is key to protecting money and investments. This is vital to stop scams and build confidence.
Ghana's economy has faced issues with weak systems and a lack of clear information. The Borrowers and Lenders Act 2020, also known as Act 1052, was created to help. It works alongside the Collateral Registry. These tools are meant to make borrowing easier and less risky. Prior to these reforms, problems like unclear ownership and properties being used as collateral multiple times hurt the financial system.
GAREB has reported many problems in the past. Its members have lost money from fraudulent land sales. Some buyers purchased land that was already used as security for loans. They did not know this beforehand. This caused unexpected disputes and financial losses. GAREB stated that the industry used to rely heavily on trust and word-of-mouth. Now, they emphasize responsibility and understanding property systems.
The Association also urged the public to work only with licensed professionals. This helps reduce fraud and increases accountability. People should always ask to see licenses. They can check if agents are registered with the Real Estate Agency Council. Professional bodies like GAREB can also help verify practitioners. The Council plans to increase monitoring and inspections soon. Businesses operating without licenses will face legal action.
This engagement with GAREB provided brokers with information. They learned about Act 1052 and the Collateral Registry. They also reviewed the steps for registering and searching for secured loans on properties. These efforts are expected to improve the reliability of real estate transactions in Ghana.